Airbus and Boeing. Taking off in Toulouse (and Seattle)

Just as Airbus's super-jumbo makes its maiden flight, Boeing bounces back

WHEN the new A380 took off from Airbus's French production base in Toulouse on April 27th, it should have been the European aircraft manufacturer's big week. The successful first test-flight of a 555-seat super-jumbo was quite an event. Instead, Airbus's American rival Boeing almost stole the show. On April 25th, Boeing said that, if all the options are taken up in a new order for widebody jets from Air Canada, the value at list prices would be around $15 billion - making it one of the biggest aircraft orders ever. The following day, Boeing landed a second huge order from Air India. Soon it will announce a third, this time from Northwest Airlines for its new 787 long-haul aircraft.

The timing may well have been deliberate. Nevertheless, the three orders are more than marketing hype, and should worry Airbus. They all come from airlines that have long been big Airbus customers, and they reflect a new sense of purpose at Boeing, which now looks like outselling Airbus for the first time in recent years under its new super-salesman, Scott Carson. They also bring the tally of launch orders for Boeing's new 787 to over 200 - impressive for a new plane which has been on the market for only a year. Airbus, by contrast, has only one customer for its rival A350 long-haul plane, and sees orders for the A380 obstinately stuck at 154.

Boeing sorely needed a boost, not least to spread cheer at its civil-aircraft base in Seattle. Airlines have stopped ordering the venerable 747, except in cargo versions, and the firm may soon have to close the production line, along with those of several smaller planes such as the 717 and the 767.

Boeing clings to the hope that the 747 will survive in a new advanced version, carrying 450 passengers (instead of the usual 416), using composite (weight-saving) technology and engines developed for the 787. British Airways, Cathay Pacific and Japan Airlines - three big carriers that have conspicuously avoided signing up for the new Airbus - are understood to be potential launch customers of the new Boeing jumbo, if it ever flies. Several earlier attempts to upgrade the 35-year-old 747 have flopped.

Unless Airbus can soon unveil some new orders for the A380, possibly at the Paris air show in June, scepticism will grow that the €12 billion ($15.7 billion) project will never earn a profit. Airbus needs to sell around 500 (out of its target sales of 700 over 20 years) to earn a real return on the investment.

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